Loading...
HomeMy WebLinkAboutM-86-0707t CITY OF MIAMI. PI_onIQA INTER -OFFICE t EMORAN93UM To: The Honorable Mayor and Members of the City DATE1900 ME - Commission Authorization For RFP SU.JECT: For The Overtown Shop- ping Center FROM: Cesar H. Odi o City Manager REFERENCE$: September 11, 1986 ENCLOSURES: Commission Agenda "It is recommended that the City Commission adopt the attached resolution authorizing the City Manager to issue a Request for Proposals n SUDStantiaTly tHe form a ac a herein, for the sel a/sti on of a qualified firm for e opera Pn, management and maintenance offfiiee;l�.er own opp ng en er; furtheF authorizing the City Manager to establish a Selection Review Committee composed o represenTatives from the 0vertown Advisory Board, City of Miami Departments of Development, Finance and General Services Administration, and a representative with expertise in the area of management and marketing of shopping centers." Background The Overtown Shopping Center was developed to provide needed services to the Overtown residents as well as to serve as a mechanism for minority business development and the provision of jobs to a chronically high unemployment area. The shopping center was completed in December, 1983 as a joint effort between the City of Miami and the Overtown Economic Development Corporation (OEDC). It was developed with $1,580,400 of grant funds from the U.S. Department of Commerce EDA and matching funds of $395,100 from the City of Miami. The OEDC, through Resolution No. 81-158, was responsible for the construction, leasing and management of the Overtown Shopping Center. However, due to OEDC's failure to properly handle a Claim of Lien against the shopping center and other violated terms of its lease agreement, at the February 13, 1986 Commission meeting, the City Manager recommended that the lease with OEDC be terminated. AUG 2 8 119k Honorable Mayor and Members of the City Commission Page 2 As a result of the termination of the lease agreement with OEDC , the Department of Development assumed management responsibility of the shopping center. Presently, the shopping center has only 4 tenants: a physician, a beautician, a county office (Metro Dade Youth and Family Services) and an office occupied by Miami Dade Community College. The major tenant in the shopping center, a 13,000 sq. ft. grocery store, was evicted in April, 1985 for non-payment of rent. Recommendation It has been determined that the best way to handle the leasing, subleasing, completion, operation and maintenance of the retail space at the Overtown Shopping Center is to have a qualified management firm take over the responsibility. In order to solicit bids for this purpose, the attached Request for Proposal (RFP) has been prepared. The master lease shall be awarded to the most qualified and responsive proposer whose proposal offers the most viable plan to operate the shopping center and the best economic return to the city. Also, those proposals that involve the creation of additional jobs and the stimulation of commercial activity in the neighborhood will be given added preference. The proposals will be evaluated on the following basis: REQUIREMENT MAXIMUM VALUE 1) Financial Statement 40% 2) Experience in relation to the management 30% of real estate, shopping centers, and neighborhood food and retail facilities 3) Minority participation 30% Total 100% It is therefore recommended that the City Commission adopt the attached resolution authorizing the issuance of a Request for Proposal (RFP), in substantially the form attached herein, for the selection of a qualified firm to operate, manage and maintain the Overtown Shopping Center and the establishment of a Selection Review Committee. Attachment 1 REQUEST FOR PROPOSALS FOR THE LEASING, SUBLEASING, COMPLETION, OPERATION AND MAINTENANCE OF THE OVERTOWN SHOPPING CENTER CITY OF MIAMI XAVIER L. SUAREZ, Mayor MILLER DAWKINS, Vice Mayor JOE CAROLLO, Commissioner ROSARIO KENNEDY, Commissioner J.L. PLUMMER, Commissioner CESAR H. ODIO, City Manager Submission Due Date: Submissions Accepted Only At: Further Information: November 14, 1986 - 3:00 P.M. City of Miami City Clerk's Office 3500 Pan American Drive P. 0. Box 330708 Miami, FL 33133 Telephone: (305) 679-6065 Matthew Schwartz City of Miami Department of Development Dupont Plaza Hotel/Office Center 300 Biscayne Boulevard Way Suite 400 Miami, FL 33133 Telephone: (305) 579-3366 TABLE OF CONTENTS Page I. Public Notice................................1 II. Summary......................................3 III. Detailed Description of Shopping Center and Service Area Market Support ..............4 IV. Minimum Requirements of Proposers ............6 V. Appendix ..................................... A. Location Map of Overtown Shopping Center B. Floor Plan of Overtown Shopping Center C. Summary of Current Leases Y;. PUBLIC NOTICE The CITY OF MIAMI, through the Department of Development, is soliciting sealed proposals for the leasing, subleasing, completion, operation and maintenance of approximately 31,127 square feet of retail space at the Overtown Shopping Center located at 1490 NW 3 Avenue, Miami, FL 33136. The Overtown Shopping Center, completed in December 1903, was a $2.1 million project constructed as a joint effort between the City of Miami and the Overtown Economic Development Corporation. It is a single -story concrete block and stucco complex with steel bar and joist roof. It was designed to accommodate ten retail stores, the major anchor being a 13,000 square foot supermarket. Its design and appearance is that of a high -quality neighborhood shopping center. Priority consideration will be given to proposals that show a proven record in retail food sales, as the primary goal of the shopping center is to improve delivery of services to the community by attracting a supermarket as the major anchor. The 13,000 sq. ft. supermarket space is currently vacant, but it is completely equipped. The price of the equipment is subject to negotiations. The shopping center is currently partially leased and all existing tenant leases must be honored by the master lease. The successful bidder will be required to primarily operate the supermarket and either lease, sub -lease or sub- contract to lease and manage the remaining retail space. Active minority participation is encouraged. Each proposer will be required to submit a good -faith deposit of $2,000 to be credited toward the lease agreement. Non -successful bidders will have their deposits refunded in full. All proposals shall be submitted in accordance with Request for Proposal documents, which may be obtained from the City of Miami Department of Development. These documents contain detailed and specific information regarding the property being offered for lease and the Cit.,'s goals for the use of the property by the successful proposer. The City of Miami reserves the right to accept any proposal deemed to be in the best interest of the City, to waive any irregularities in any proposal, to reject any or all proposals and/or to re -advertise for proposals. In making such determination, the City's consideration shall include, but not be limited to: (a) the proposers' experience, (b) minority involvement, ( c ) proposer' s financial strength, ( d ) professional reputation of the proposer, and (e) evaluation by the City of all information submitted in support of the proposed use and development of the property. The master lease shall be awarded to the most qualified and responsive proposer whose proposal offers the most viable plan to operate the shopping center in stimulating economic betterment in Overtown by the operation of the shopping center. Proposals involving the creation of additional jobs and stimulation of commercial activity in the neighborhood will be given added preference. Sealed proposals shall be submitted to the office of the City Clerk of the City of Miami, located on the first floor of Miami City Hall, 3500 Pan American Drive, Dinner Key, Miami, FL 33133 on or before 3:00 p.m., Friday, November 14, 1986. A Selection Review Committee will be established by the City to review each of the proposals and make a recommendation to the City Manager. Any questions pertaining to this Request for Proposal should be directed to: Matthew Schwartz, Deputy Director Department of Development 300 Biscayne Boulevard Way, Suite 400 Miami, FL 33131 (305) 579-3366 II. SUMMARY The City of Miami, through the Department of Development, is soliciting proposals for the leasing, subleasing, completion, operation and maintenance of approximately 31,127 square feet of retail space at the Overtown Shopping Center located at 1490 NW 3 Avenue, Miami, FL 33136. The Shopping Center was developed to improve delivery of commercial retail services to the Overtown neighborhood, to create jobs, and to contribute to the economic stabilization of the community. The successful proposer will be required to operate and/or lease the 13,000 sq. ft. supermarket and to lease or sub -contract for the operation, management and maintenance the remaining retail space. A summary of the current leases is attached for your review (Appendix C). All current leases must be honored by the master lease. The shopping center lies adjacent to the Culmer/Overtown Neighborhood Center and is intended to provide improved retail services to complement the other support services offered by the agencies in the Cul mer facility. The shopping center, together with the Culmer/Overtown Neighborhood Center, should act as a stimulus to promote the economic and social betterment of the Overtown neighborhood. Other projects already underway or planned for areas inside or adjacent to Overtown will further serve to strengthen the economic base of the shopping center's service area and will contribute to the revitalization of this section of the City. The shopping center was completed in December, 1983 as a joint effort between the City of Miami and the Overtown Economic Development Corporation. It was developed with $1,580,400 of grant funds from the U.S. Department of Commerce Economic Development Administration, and matching funds of $395,100 from the City of Miami. The proposed master lease agreement will be subject to all laws and City Charter requirements. V DETAILED DESCRIPTION OF SHOPPING CENTER AND SERVICE AREA MARKET SUPPORT The shopping center, constructed in 1983, is a convenience retail center located at NW 3 Avenue and NW 15 Street. The gross leasable floor area is approximately 31,127 square feet. The entire site is 2.53 acres with parking for 102 cars. The objectives for the development of the shopping center are to improve the delivery of commercial services to the Overtown community, create jobs for area residents, improve the economic base of the community and stimulate private investment in the area. The shopping center should become a strong anchor for the continued economic revitalization of the Overtown community. When fully operational, the center will be the primary full - service, convenience, modern retail facility serving a population of approximately 10,000 residents. A primary service area of one square mile has been delineated: To the North by: Northwest 21 Terrace and Northwest 22 Street between 7 Avenue Northwest and thereafter Northwest 20 Street, between 3 Avenue Northwest and the right-of- way of the Florida East Cost Railroad To the South by: Northwest 5 Street between 7 Avenue Northwest and the Florida East Coast Railway To the East by: The Florida East Coast Railroad between Northwest 5 Street and Northwest 20 Street. To the West by: Seventh Avenue Northwest between Northwest 5 Street and Northwest 21 Terrace. Profile of the Service Area The Overtown neighborhood is one of the oldest in the City of Miami and is centrally located. It is bounded on the south by the Miami River and NW 5 Street, on the east by the F.E.C. railway tracks, on the north by NW 21 Street and on the west by I-95 and State Road 836. In 1980, the Census reported a population of 10,335 residents for Overtown. The current median age in the area is 28.3, compared to a median age of 38.2 for Miami and 34.7 for Dade County. The shopping center is adjacent. :, i L to the Culmer Neighborhood Service Center which houses the major soci al service agencies serving the Overtown community. The center houses 14 agencies and generates 600 visitors daily. The neighborhood shopping center and the adjacent social service center are the major activity nodes within the Overtown area. It can be anticipated that in an area with the socio-economic characteristics of Overtown, between 30-33% of available income is spent for food. In a 1980 study, First Research Consultant found that of all sales within the various categories of shoppers goods, only 30% of the general merchandise sales which might be transacted is being realized. There were no significant apparel sales, in the area, and furniture sales were only 5% of the potential level. Currently furniture sales are nonexistent. For all other types of shoppers goods only about 25% of the potential sales is being realized. Under convenience goods, total existing food sales represented only 15% of the actual potential in sales. First Research Consultants in their analysis further estimates that retail sales in Overtown, as represented in the categories of shoppers goods and convenience goods including food sales, represents approximately 27% or $5.0 million of potential sales. The Consultants survey also determined that the general tendency au3ng shoppers is to transact normal household buy';ng at varying distances from the homes and from the service area boundaries. Because of this it is estimated that there is a deficit sales potential of approximately $13.3 million. This buying power is either leaving the area or remaining unrealized due to the lack of a proper commercial base within Overtown. The shopping center, with a supermarket as the major tenant and an appropriate mix of retail establishments that meeting the demands of the service area, could conceivably regain a substantial portion of the lost retail sales. IV. MINIMUM REQUIREMENTS OF PROPOSERS The City of Miami reserves the right to accept any proposal deemed to be in the best interest of the City, to waive any irregularities in any proposal, to reject any or all proposals and/or to re -advertise for proposals. The minimum requirements that must be included in the proposal are as follows: REQUIREMENT MAXIMUM VALUE IN_EYAL _ _ POSALS 1) Financial statement 40% 2) Experience in relation to the management 30% of real estate, shopping centers, and neighborhood food and retail facilities 3) Minority participation 30% TOTAL 100% A "good faith" deposit of $2,000 will be required from each proposer at the time of submission to be credited toward the lease agreement. Non -successful bidders will have their deposit refunded. All proposals must include a projected rent schedule for tenants and for lease of the facility from the City. The master lease shall be awarded to the most qualified and responsive proposer whose proposal offers the most viable plan to operate the shopping center and the best economic return to the city. Proposals involving the creation of additional jobs and stimulation of commercial activity in the neighborhood will be given added preference. Mal ORANGE nf Center r 0 SAY STADIUM c; T. IS 13,6= r I I I i 11, 2-1.1 : I LOCATION MAP DOWNTOWN C-B-D-- lot VICE AREA APPENDIX A Parking m MU-1 • 0 70 O Parking H.W. 3 AVIR. APPENDIX 1 CURRENT TENANTS lip TENANTS DATES RENT ---- S9 Burrs Beauty Salon 10/19/85 (5 years) $608.14 1,121 D. Moises Grimberg 2/21/84 (5 years) $787.50 1, 890 Miami -Dade Comm. College 1/22/86-8/22/86 $1,875.00 being renewed 2,172 Metro -Dade 7/23/86 (2 years) $1,900.50 4,000 Dept. Youth & Family Services I Detailed copies of the leases are available for inspection. . 3 f tiI APPENDIX -_C t